Yum China’s Fair Value Raised

Undeterred the COVID-19 spread, the chain operator of Pizza Hut in China sees a long runway of expansion.

Kate Lin, CAIA 03 May, 2021 | 10:25
Facebook Twitter LinkedIn

Yum China's KFC and Pizza Hut outlets

Yum China (YUMC, 9987) is the largest restaurant chain in the country, operating more than 10,000 restaurant outlets, notably under the fast food brands Pizza Hut and KFC. While the flare-up of coronavirus cases put restaurants under pressure, Yum is only affected to a small extent, according to Morningstar equity analyst Ivan Su. This is mostly attributed to its digital ordering and delivery platform, which helped retain customers throughout the pandemic.

‘It’s common that fast food chains would outperform in the times of economic hardships, such as the COVID-19 recession in 2020. Basically, people tend to go for cheaper options, instead of a full-out fancy meal. Also, large group gathering is impossible under social distancing rules. Take-out fast food emerges as a good option, too,’ Su notes.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Member.

Register For Free
Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Yum Brands Inc126.57 USD-0.17Rating
Yum China Holdings Inc Ordinary Shares471.40 HKD0.94Rating
Yum China Holdings Inc Ordinary Shares60.47 USD-0.28Rating

About Author

Kate Lin, CAIA

Kate Lin, CAIA  is a Data Journalist for Morningstar Asia, and is based in Hong Kong

© Copyright 2021 Morningstar Asia Ltd. All rights reserved.

Terms of Use        Privacy Policy